Bitcoin bulls are offering a strong base but appear to be in a dilemma as they are failing to push the price above $60,000. The markets are heading towards one of the crucial phases, which is largely considered a ‘bearish month’ in history. Now that the price is juggling around a certain range, the next price action appears to be quite misty and unclear. Regardless of the possibility of a bullish close, the upcoming trade may witness a massive squeeze.
The BTC price declined from the 20-day EMA of $60,497 in the past couple of days, suggesting the bears are selling into the rallies. The platform witnessed one of the large liquidations, which has been mounting pressure on the prices. The BTC selling pressure is reportedly said to be due to the ongoing redistribution of funds to Mt. Gox creditors, which has been a source of fear in the market.
While the short-term price action does not display any strength, the on-chain movements have been pretty scary.
One of the popular platforms recording on-chain developments, Lookonchain, displays an interesting yet chilling transfer of over 2300 BTC worth nearly $140 million. This transfer to Binance has raised massive alarms across the markets. In the times when the BTC exchange reserves have been slashing hard, these huge transfers may raise huge suspicion for the next course of action.
However, the BTC price continues to hold above key quarterly levels, keeping the bullish probabilities alive. The levels around $58,300 are acting as strong support and as the weekend trade is about to begin, the support is expected to be held tight. With this, the price could extend its consolidation around these levels along with short-term volatility in the coming week.
Will Bitcoin Price Head Towards $40,000 in September?
The Bitcoin price is trying to make higher lows on the daily time frame and hence the uptrend has not been broken yet. Therefore, there is more room for the token to maintain a strong bullish trend as the bulls remain passive but exhibit the possibility of a reversal.
While the historical figures suggest the price is about to enter a bearish month, the possibility of a reversal is also seen in the same chart. The price has been extremely bullish in the last quarter and the post-halving has always been extremely bullish. While the summer markets can be boring and frustrating, the upcoming Bitcoin price action is expected to attract the bulls back to the markets.
